The practical answer
It may release cash in an eligible proposal, but it also adds a repayment commitment and does not repair a loss-making business model.
Prepare a realistic forecast showing why the gap arose, how it will be resolved and how new repayments are met. Include tax, supplier arrears and existing borrowing rather than considering the cash release alone.
If the company may be unable to pay debts as they fall due, seek prompt advice from its accountant or an appropriate insolvency professional before committing assets to further borrowing.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Asset refinance →